We have an investment property we bought about 10 years ago. We're thinking about knocking it down and rebuilding on the land. We plan to rebuild our main residence, then sell our current home and move into the new home. My question is when CGT kicks in. I know (I think I know) that if we move into the existing house, CGT doesn't apply until we eventually sell it, but what if we demolish the house, rebuild and move into the new house?
Hi @ub60,
You can only have one main residence at any given time. If you've never lived in the investment property, you'd be liable for CGT till the time it becomes your main residence. If you still owned a 2nd property, you'd need to decide from that point on which one will be looked at for CGT. However, from the time you purchased the investment property till the time it's looked at as your main residence will be looked at for CGT. If there's a portion of time it was your main residence, you can apply a partial exemption.
You may wish to speak with a financial advisor to know what your best options are.
There will CGT if it is sold in the future - but exempt pro-rata for period of main residence.
Hi @ub60,
You can only have one main residence at any given time. If you've never lived in the investment property, you'd be liable for CGT till the time it becomes your main residence. If you still owned a 2nd property, you'd need to decide from that point on which one will be looked at for CGT. However, from the time you purchased the investment property till the time it's looked at as your main residence will be looked at for CGT. If there's a portion of time it was your main residence, you can apply a partial exemption.
You may wish to speak with a financial advisor to know what your best options are.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
889 views
2 replies